Elcid Investments to Acquire Small Stake in Zepto Valued at Nearly USD 6 Billion

Elcid Investments, a non-banking financial company, announced plans to invest up to Rs 7.5 crore in Zepto. This investment values the quick commerce company at nearly USD 6 billion. The deal is structured as a cash consideration and is expected to conclude within 25 days.

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The investment will be used to subscribe to compulsorily convertible preference shares (CCPS) of Zepto. Each share has a face value of Rs 5, with Elcid acquiring 22,55,639 equity shares at Rs 33.25 per share. This investment represents approximately 0.0146% of Zepto's total share capital.

Zepto's Financial Performance

According to Elcid's regulatory filing, Zepto is projected to achieve a revenue of Rs 11,109.9 crore for FY25. However, Zepto has not officially confirmed these figures in response to the filing. The company had previously reported a revenue of Rs 4,454 crore for FY24.

Zepto's revenue in FY24 marked more than a two-fold increase from Rs 2,025 crore in the previous fiscal year. Despite this growth, the company managed to slightly reduce its losses from Rs 1,272.4 crore in FY23 to Rs 1,248.6 crore in FY24.

Investment Details and Stake Acquisition

Elcid's investment in Zepto involves acquiring a minor stake through CCPS. The shares are valued at Rs 33.25 each, contributing to the overall valuation of Zepto at USD 5.9 billion. This strategic move by Elcid highlights its interest in the rapidly growing quick commerce sector.

An email query sent to Zepto seeking confirmation on these details did not receive a response. The lack of official comment from Zepto leaves some aspects of the financial projections unverified.

Elcid's filing indicates that the investment will result in acquiring a small percentage of Zepto's equity on a fully diluted basis. This aligns with Elcid's strategy to diversify its portfolio by investing in promising sectors like quick commerce.

The projected revenue and reduced losses reflect Zepto's significant growth trajectory over recent years. As the deal progresses, stakeholders will closely monitor any updates or confirmations from Zepto regarding its financial outlook and strategic plans.

With inputs from PTI